RESOLUTION
AWARDING CONTRACT TO INTER-CITY OIL COMPANY, INC., FOR FUEL AS NEEDED
DURING YEAR 2005 FOR THE FIRST FOUR MONTHS AT AN ESTIMATED AMOUNT
OF $176,667.

BY
COUNCILOR STEWART:

RESOLVED,
that Inter-City Oil Company, Inc., be and hereby is awarded a contract
for furnishing and delivering fuel as needed during the year 2005 for
the first four months for the fleet services division, in accordance with
specifications at an estimated amount of $176,667, terms net 30, FOB destination,
payable out of Fleet Services Fund 0660, Department/Agency 015, Organization
1560, Object 5212.

STATEMENT
OF PURPOSE: This resolution will authorize the purchase of approximately
133,000 gallons of fuels (heating, diesel, gasoline, etc.) as needed during
year 2005 for the first four months (January 1, 2005, through April 30,
2005) from Inter-City Oil Company, Inc., for $176,667 to be paid from
Fleet Services Fund 660. Price is based upon a fixed constant of $0.05
per gallon (80 percent of fuel usage) for service station fuels and $0.06
per gallon (20 percent of fuel usage) for delivered fuels. The bid constant
is added to the Duluth daily rack average price plus applicable taxes.
Estimated price based on year 2004 usage. Bid Nos. 00-0042 and 00-0043;
Requisition Nos. 05-0060 and 05-0061